Financial Report Analysis of Kathmandu Holdings Limited (2018)

This report provides an analysis of Kathmandu Holdings Limited's financial performance, focusing on its growth strategies and investment opportunities. The report examines the company's operations, including its apparel and recreational goods retailing, and its expansion strategies, such as opening new stores. It also includes a comparison with a competitor, Ex Officio. The analysis highlights the importance of holding shares based on the company's positive financial trends and dividend policies. The report uses data from the 2018 annual report and provides recommendations based on this information, supporting the findings with graphical representations and references. The report also includes a comparison of Kathmandu Holdings to one of its competitors, Ex Officio, to understand the company's strategies and operations better.

Running head: KATHMANDU HOLDINGS LIMITED 0
Kathmandu Holdings Limited

KATHMANDU HOLDINGS LIMITED 1
Question 1
Kathmandu Holdings Limited is the Australian based organization which is managing in the
travel based gear and the equivalents are traded in the New Zealand. The selling and the
adventure outdoor apparels are also sold to the New Zealand and the Australia. The company
has also paired up with Penny Hazard to set up the Bivouac Chain of stores in New Zealand.
Kathmandu Holdings is generally dealing in the two major categories that is apparel retailing
and the recreational goods retailing. The company was earlier operating as the small retailer
but later on it has instilled into the vertically integrated business with the presence of the
entire retail market. They also manufacture the products like the material and the designs to
cater the needs and the preferences of the customers. The products are not sold via wholesale
medium hence the company earns from two ways. The company opened 36 new stores and at
present they have more than 130 stores. The company is listed on the two stock exchanges,
namely the Australian Stock Exchange and the New Zealand Stock Exchange. The company
has established its name in the line of the clothing and the travel equipment to become the
world’s largest seller (Kathmandu Holdings Limited, 2018).
Question 2
The section of the growth strategies and the investment opportunities is core evidence that
proves that the shares of the Kathmandu holdings shall be kept on hold, as it is advised to the
investors because the movement of the share price over the period of three years as it can be
seen from the graphical representation. The average returns of the investors are more than the
All Ords index (Briston, 2017). It can also be reflected that the trend lines of the Kathmandu
share holdings are mostly above the return of the All Ords Index and the position of the
company is better than the position of the All Ords Index cumulatively. The dividend policy
of the Kathmandu holdings is providing 11cents per share as the final dividends and 4 cents

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per share as the interim dividend. therefore it is advised to the shareholders and the investors
to kindly hold their shares as the company is going to bring some new investment
opportunities and also the company is engaged on working on the basic pillars of the success
according to the directors and the CEO as it can be observed from the annual report as well
which are the growth strategies in the international market and continuous improvement to
provide future benefits to the shareholders and the investors (Brogaard, Hendershott and
Riordan, 2017).
1/1/2015
4/1/2015
7/1/2015
10/1/2015
1/1/2016
4/1/2016
7/1/2016
10/1/2016
1/1/2017
4/1/2017
7/1/2017
10/1/2017
1/1/2018
4/1/2018
7/1/2018
10/1/2018
1/1/2019
-0.25
-0.20
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
Kathmandu holdings Limited
Average return
All Ordinaries Index
Months
Average return
Question 3
For the purpose of the comparison of the Kathmandu Holdings Limited to one of its
competitors the company chosen is Ex Officio which deals in the specialisation of the
designer clothing and the best garments are available under the travel community. This
company is chosen basically because it can give a platform to compete and the Kathmandu
Holdings can get to understand the strategies of the company and their operations of the
business and implement if any it can to become a better version of itself (Trip Savvy, 2017).

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References
Kathmandu Holdings Limited, 2018. Annual report [Online] Available from
file:///C:/Users/Manita/Downloads/3015245_1983798077_2018AnnualReportofKathmundu-
69.pdf [Accessed on 25th January 2019]
Trip Savvy, 2017. Where to Find Travel Gear, Supplies and Accessories [Online] Available
from https://www.tripsavvy.com/where-to-find-travel-gear-34202 [Accessed on 25th January
2019]
Brogaard, J., Hendershott, T. and Riordan, R., 2017. Price discovery without trading:
Evidence from limit orders. United Staes: John Wiley & Sons
Briston, R.J., 2017. The stock exchange and investment analysis. New York: Routledge.